Fuel Savings and the Performance of a Full-Size Pickup Truck
The 2009 Chevrolet Silverado Hybrid and the 2009 GMC Sierra Hybrid are the first trucks on the market that offer customers the fuel savings and energy diversity of hybrids matched with the performance, towing and hauling capability of full-size pickup trucks. These vehicles also are the first to be featured on a new section of Socrates that provides handy one-page summaries of GM vehicles
Chevrolet Spark: World Premiere at Geneva Auto Show
The all-new Chevrolet Spark, making its world premiere at the Geneva auto show in March, is a small car designed to make a big statement. It's big on style, big on fuel economy and, like all products carrying the Chevrolet gold bowtie, big on refinement and value.
Its design breaks the mold for mini-cars and takes Chevrolet's signature styling elements to this vehicle segment in a youthful, fun and fashion-conscious way.
Spark was inspired by the Chevrolet Beat concept, the most popular of a trio of mini-car concepts that has toured international auto shows since 2007. A clear majority among 1.9 million internet voters said it was the car they wanted produced.
Chevrolet's Fuel-Efficient and Advanced Technology Vehicles
take Center Stage at the 2009 Washington D. C. Auto Show!
Fuel efficiency reigns at the 2009 Washington Auto Show with General Motors’ display of newly introduced cars and crossovers, led by its foundational brand, Chevrolet. The lineup demonstrates GM’s commitment to building fuel-efficient vehicles using advanced propulsion technologies, all with a continued focus on design, quality and value that exceed customer expectations.
Chevrolet Volt Named 2009 Green Car Vision Award Winner ….
The Chevrolet Volt was named the 2009 Green Car Vision Award™ winner by the auto enthusiast magazine Green Car Journal yesterday at the Washington Auto Show.
Competition for the award was keen, with plug-in hybrid, range extended electric, battery electric, and hydrogen fuel cell vehicles vying for the prize.
“The Chevy Volt offers a bold and far-reaching approach that will bring an exceptionally fuel efficient model to consumers at reasonable cost,” says Ron Cogan, editor and publisher of the Green Car Journal and editor of GreenCar.com. “Besides being a great design, the Volt promises exactly what many consumers are asking for – a car capable of driving on zero emission battery power most of the time at pennies per mile, with over 100 mpg possible on longer journeys when electric power from its range extender engine-generator is needed.”
All-new Chevrolet Spark will premiere at Geneva Show in March 2009 ….
The Chevrolet Spark will make its world debut at the Geneva Auto Show in March 2009. The all-new A-segment entry will reach the European markets in early 2010. The vehicle will also be added to the Chevrolet portfolio in the United States in the fourth quarter of 2011. The announcement was made by Troy Clarke, President GM North America, during Chevrolet’s press conference at the North American International Auto Show at Detroit.
“The Chevrolet Spark will add great style, roominess and versatility to the segment of extremely fuel-efficient small cars in the US,” said Clarke. “The decision to add the Spark to Chevrolet’s North American portfolio reflects the brand’s commitment to being a fuel efficiency leader in the US vehicle industry.”
At the same time, Troy Clarke announced that the Chevrolet Orlando concept vehicle shown at the Paris Motor Show in September 2008 will go into production in 2010 and be offered in North America as well as in Europe.
Originally seen as the Chevrolet Beat concept, the five-door Chevrolet Spark will provide versatility with a fresh, youthful exterior and interior design that is reflected in the selection of materials and colors. The Chevrolet Spark will make its world debut in full production form at the Geneva Auto Show in March 2009. Sales will start in Europe in the first quarter of 2010, followed by other markets around the globe.
“These two stylish vehicles make a big statement,” said Wayne Brannon, executive director, Chevrolet Europe. “With their fresh, clean approach, we believe Spark and Orlando will appeal to a wide range of customers who want fuel efficiency, functionality and great design combined with excellent value.”
GM Puts a Charge in Auto Show
Washington Post
By Kendra Marr - Jan. 13, 2009
The most talked-about announcement at the North American International Auto Show yesterday wasn't about any of the gleaming cars on the convention center floor. It concerned batteries.
General Motors unveiled plans to build a lithium-ion battery plant in Michigan to assemble battery packs for the 2011 Chevrolet Volt, the company's highly anticipated plug-in electric hybrid.
"We believe this will become a competitive advantage for GM and will be critical to GM's success," GM chairman and chief executive G. Richard Wagoner Jr. told a crowd at the show.
The project comes as the auto industry and its supporters jockey for attention and possibly a piece of the giant stimulus package being considered by Congress and President-elect Barack Obama. Until a battery plant can be built, key pieces of the Volt's battery pack are being manufactured in South Korea by GM partner LG Chem.
Michigan Democrats Sen. Carl M. Levin and Rep. Sander M. Levin said this foreign involvement underscores the critical need for federal grants and partnership to increase the manufacturing capability necessary to produce the cells and wean drivers off gas guzzlers.
"We are at a critical juncture in the commercialization of advanced battery technology to power the next generation of green vehicles," they said in a statement. "We must be in the position to produce the essential components in the U.S. and not rely on advanced technology and critical building blocks produced elsewhere and brought to the U.S. for assembly."
Throughout the show, U.S. carmakers have been quick to point out that the governments of Japan, China and South Korea each worked with their domestic automakers to develop battery technology. Japan, for instance, put up funding to jump-start Panasonic EV, the joint venture between Panasonic and Toyota, which is now the world leader in hybrid battery production. China, meanwhile, has offered free electricity and equipment to battery factories.
Government subsidies can help encourage wider adoption of the technology by helping keep down the initial cost of the new batteries.
"These are sort of things I'm hoping the Obama administration will understand," said Bob Lutz, GM's vice chairman of global product development. "For the U.S. to become industrially competitive with the rest of the world again, these things are going to have to be done."
For years Michigan has vied for green companies and jobs with little success. Then, three weeks ago, the state legislature passed tax incentives of up to $335 million to attract battery manufacturers.
Michigan Gov. Jennifer M. Granholm (D) is expected to sign the legislation. In a parade of GM's fuel-efficient cars on Sunday, the governor and cheering GM employees marched behind the Volt, holding signs reading "We're electric" on one side and "Here to stay" on the other.
GM has not announced a location or opening date for the new plant. The company did not say how much it would invest. Analysts said it would be logical to build the new plant near GM's Volt production facility in Hamtramck, Mich. Until GM's new battery facility is operational, Compact Power -- a subsidiary of LG Chem based in Troy, Mich. -- will build the battery modules for prototype vehicles.
The auto industry has placed its bets on lithium-ion batteries. The batteries are already under the hoods of many of the concept cars at the auto show.
But, while lithium-ion technology is widely used in laptops and cellphones, it has taken years for it to be tested and vetted for use in automobiles. As a result, Asian companies specializing in consumer electronics, such as Panasonic, have significant leads, analysts said. LG Chem beat out A123 Systems of Watertown, Mass., for GM's battery partnership.
To promote additional advancements in battery technology, GM said it would also open a 31,000-square-foot automotive battery lab in Michigan and partner with the University of Michigan's engineering college to train automotive battery engineers. The location of the lab has yet to be decided. GM also hopes to accelerate its in-house battery development by increasing its electric vehicle staff to several hundred engineers this year.
To date, GM has invested more than $1 billion in the Volt, a car that will be able to travel 40 miles on a single charge. The automaker plans to sell its first generation of the plug-in for $30,000 to $40,000.
Lutz said GM would be open to selling Volt's battery packs to competitors in the future.
"Since we already sell other people engines and transmissions, there's no reason why we wouldn't sell other people battery packs," he said.
GM's investment comes as it is experiencing considerable financial hardship. But Beth Lowery, GM vice president of environment, energy and safety policy, said the automaker's success is ultimately tied to advanced technology particularly the Volt and car batteries.
"You can't afford not to invest in things that are critical to the company," she said.
In Cars, White's the New Silver
The Detroit News
By Eric Morath Dec. 5, 2007
Car buyers everywhere are waving the white flag.
White/white pearl ended silver's streak of seven years as the world's most popular color for automobiles, according to the DuPont 2007 Global Automotive Color Popularity Report, released Tuesday.
In North America , as well, white is the most popular color, holding 19 percent of the vehicle market. Silver cars make up 18 percent of the market, and black/black effect (a metallic, sparkly finish) 16 percent.
Last year, white and silver were tied for most popular in North America.
Silver's seven-year hold on the top spot was the longest consecutive streak in the 55-year history of the survey.
The preference for white indicates that consumers are poised to shift in a new direction when it comes to vehicle color, said Karen Surcina, DuPont color marketing and technology manager.
"White is a trend-shifting color," she said. "Things are up for grabs customers are looking to personalize their vehicle with different shades and specialty finishes."
That personalization trend is demonstrated in the popularity of white pearl (an iridescent hue that reflects many colors) and black effect.
DuPont, a top supplier of automotive coatings, said other styles gaining interest are niche colors and effects, including matte finishes.
Red is also growing in popularity – increasing its share 2 percentage points in North America and surpassing gray and blue to become the fourth most popular color in the market. Red's popularity shows that North Americans are becoming more accepting of color, Surcina said.
"Bright and bold offers of colors are important," she said. "Automakers are using those to gain attention for newly introduced vehicles, a sort of 'notice me' factor."
For example, Chrysler's Charger Daytona model, which was re-introduced recently, was offered in Top Banana yellow and Go ManGo orange, then in subsequent years Sub-lime green and Plumb Crazy purple.
But tradition still rules. North American tastes fall in line with those in Japan , where buyers also prefer white cars, but differed from Brazil , China and South Korea , where silver still leads; and Europe , which favors black.
In North America , white is the most popular color for trucks and SUVs, and ties with black in the luxury vehicle segment. Silver remained the leader in the intermediate/crossover and the compact/sport segments, but declined in popularity compared to the 2006 report.
The DuPont report findings reflect the growing popularity of white globally – in home furnishings, fashion, consumer products and industrial design, said Leatrice Eiseman, executive director of the New Jersey-based Pantone Color Institute, which works with graphic artists, fashion and home designer, among others. <p>
"White also is considered a fashion statement," she said. "The car you drive is a fashion statement."
GM RECOGNIZED FOR DEVELOPMENT OF THE EMISSIONS-REDUCING CATALYTIC CONVERTER ...
GM’s development of the first production-ready catalytic converter for automobiles will be recognized by GlobalSpec with a “Great Moments in Engineering” award at a ceremony in Detroit later this month.
GM’s breakthrough research, development and engineering led to the company’s 1975 introduction of the emissions-reducing device, which was used in conjunction with unleaded gasoline. Since then, catalytic emission control and unleaded gasoline have been used on vehicles around the world.
“The catalytic converter has made a dramatic impact on lowering the emissions output of vehicles, leading to cleaner air and paving the way for greater powertrain efficiencies in today’s cars, trucks and SUVs,” said Tom Stephens, executive vice president, GM Global Powertrain and Global Quality. “Our global GM team is diligently focused on delivering future propulsion technologies that will address the energy and environmental challenges facing the globe.”
A catalytic converter affects vehicle emissions by transforming or significantly reducing engine combustion-generated pollutants. As exhaust gases leave the engine, they pass through the converter, where a honeycomb structure coated with precious metals, palladium, platinum, and rhodium, promotes a chemical reaction that converts pollutants to less harmful emissions before they exit the car’s exhaust system.
Emissions-reducing technology began showing up on automotive engines in the late 1960s, but mandates for even cleaner-burning engines pushed the catalytic converter’s development in the early 1970s.
Although the concept of the catalytic converter was not invented by GM, the company is credited with the innovations that enabled the catalytic converter to work in the wide range of operating environments seen by cars and trucks, including the special materials and chamber design that made the converter more effective.
GlobalSpec, a leading specialized search engine with more than 4.6 million registered users around the world, annually recognizes a person or group whose singular moment of engineering ingenuity produced a significant turning point for the application of technology and resulting benefits to people, science and industry.
BETTER SAFE THAN SORRY …. GM is mounting a campaign in the United Kingdom to reinforce the benefits of using a Vauxhall, Chevrolet or Saab approved body shop for accident repairs.
GM is currently running a comprehensive series of training programs to bring technicians working in over 150 Vauxhall, Chevrolet and Saab approved body shops throughout the UK up to speed with all the latest materials used in car assembly, and the techniques required to repair and return these cars back to their pre-accident condition.
“Our advice to drivers of our vehicles is to think carefully before letting someone else decide on the quality of their repairs, says Bernard Berman, GM accident repair manager. “Our body shop technicians are fully conversant with the latest technology to assess and restore your Vauxhall, Chevrolet or Saab to its original condition, so it will drive and protect you to exactly the same standard as when you bought it.”
CAMARO ORDERS NOW BEING ACCEPTED IN CANADA …. Since the day the Camaro concept model was unveiled, the most frequently asked question has been: “When can I order my new Camaro?” Beginning tomorrow, Chevrolet dealers across Canada will be able to submit customer orders for the new 2010 Camaro Coupe.
“Even before pricing in Canada has been finalized, Camaro enthusiasts are anxious to get their orders on the books,” said Marc Comeau, vice president of sales, service and marketing for GM of Canada. “The return of the Camaro and the buzz it has created are great reminders of the passion surrounding this marque and we’re confident the new, fuel-efficient 2010 Camaro will make enthusiasts out of a whole new generation of drivers as well.”
Camaro production is scheduled to begin in mid-February 2009 at the award-winning Oshawa, Ontario Car Assembly Plant, with dealership deliveries beginning immediately.
GM to Promote Dealer Financing Options
Automotive News
By Donna Harris
General Motors, in the wake of lending restrictions by its partially owned finance unit, will begin an advertising campaign reminding consumers that they can still finance vehicles through GM dealerships.
GM's national dealer council learned about the plans during a 30-minutes conference call with GM officials today.
News of the advertising message follows GMAC Financial Services's stringent new restriction on credit, announced Monday.GMAC said it would only finance retail customers with credit scores of 700 and above.
Some 43.5 percent of new and used U.S. vehicle loans financed during the second quarter were for customers with credit scores under 680, according to data from research firm Experian Automotive. That's compared with 37.8 percent during the same quarter of 2007.
The upcoming campaign puts GM in the position of steering dealer customers to financing channels other than its 49-percent owned GMAC affiliate. Cerberus Capital Management LP acquired a majority 51 percent stake in GMAC from GM in 2006.
GM needs to emphasize that dealers have financing options besides GMAC, say dealers who listened in on the call.
"GM would put in its ads that dealers have financing available so customers don't have the impression that they have nowhere to go," said Mike Bowsher, president of the Carl Black Automotive Group in suburban Atlanta.
GM spokesman John McDonald said he could not confirm GM's plans to advertise.
Chevrolet Tavera NEO 2 Hits the Road
The Hindu
HYDERABAD -- In tune with the growth in Multiple Utility Vehicle (MUV) segment, General Motors India on Tuesday launched its new version of Chevrolet Tavera – NEO 2 with 20 plus features.
The Tavera NEO 2 has been upgraded inside and out, including new body graphics, completely refreshed dual- tone beige instrument panel with wood-finish, utility bin in the instrument panel for more storage options, integrated double- DIN stereo for added entertainment etc.
18p.c. growth posted
“The MUV segment has posted a growth of 18 per cent and Tavera has a market share of 15 per cent. We expect to increase our share with the NEO 2 variants,” said General Motors India vice-president (sales, marketing and after-sales) Anuksh Arora, while addressing a press conference here.
Based on the seating options of 7, 8, 9 and 10 seats capacity, the Tavera NEO 2 is available in four two-tone colour formats and seven single colour formats.
While, the top end version of Tavera (D1) was costing Rs. 9.50 lakh ex-showroom price, the NEO2 with 20 plus features comes at Rs. 9.58 lakh ex-showroom price, said Mr. Arora.
Disclosing new plans of the company, he said the research and development wing was working on introduction of a mini car.
Cadillac Mulling V8 Diesel for CTS
autoblog.com
According to MotorTrend, General Motors is considering fitting its 4.5-liter Duramax V8 Turbodiesel inside the Cadillac CTS sedan as a stepping-stone between the standard V6-equipped CTS and the barn-burning CTS-V.
The report contends that the Duramax V8 would be an easy fit inside the confines of the CTS' engine bay with the addition of the CTS-V's bulging hood. The dual-overhead cam, four-valve diesel V8 puts out 310 hp and a tire decimating 520 lb.-ft. of torque and GM already has a transmission that can handle the grunt. The oilburner currently meets the tougher 2010 emissions standards which would allow it to be sold in all 50 states, and with a reported 20-25% increased fuel economy over the V8 model, the diesel CTS could provide some competition to similar offerings from Audi, BMW and Mercedes-Benz. According to MT, the amount of modifications would be minimal and the addition of the CTS diesel would help to boost GM's CAFE certification to meet the stricter 35 mpg requirements in 2020. [Source: MotorTrend]
Go to: http://www.autoblog.com/2008/10/15/cadillac-mulling-v8-diesel-for-cts/
Taylor to Hummer — and Then?
Automotive News
It's quite a career change: from midwife to undertaker.
Jim Taylor, who played a key role in the birth of a revitalized Cadillac, is the new CEO of Hummer, a brand likely headed out of the General Motors fold.
And if Hummer leaves GM, will Taylor, 52, go along?
Taylor became Cadillac's general manager in August 2004. Previously, he had been vehicle line executive for Cadillac's Sigma platform vehicles — the CTS and STS sedans, and the SRX crossover. The creased styling and rear-drive performance of the CTS, in particular, won Cadillac credibility as it began to shed its image as an old man's car.
Mark McNabb, 46, remains in charge of the Cadillac-Saab-Hummer premium sales channel. In April, GM hired McNabb, a former Nissan, Infiniti and Mercedes-Benz marketing executive, passing over Taylor.
GM spokeswoman Joanne Krell said last week that Taylor may remain with GM as head of Hummer if GM decides to keep the brand. If Hummer is sold, she said, Taylor would be at "a decision point" as to whether to leave GM.
GM Taps N.C. Firm for Key Volt Part
Detroit News
By Robert Snell
A North Carolina company is expected to announce today a $50 million, multi-year deal to provide customized auxiliary water pumps for the Chevrolet Volt extended-range electric vehicle and other General Motors Corp. hybrids.
Buehler Motor Inc., based in Morrisville, N.C., will provide 12-watt and 50-watt pumps that circulate coolant through the Volt's subsystems. The Volt, scheduled for production in late 2010, will rely on a lithium-ion battery pack that will let commuters travel up to 40 miles on electric power alone and feature a 1.4-liter engine.
GM last month rolled out a near production version of the Volt at the company's 100th anniversary celebration at the Renaissance Center. Executives said development of the four-door sedan is on schedule, though a battery supplier has yet to be identified. The Detroit automaker said it has chosen its battery supplier but hasn't made the selection public. GM has been using technology from Massachusetts-based A123 and Troy-based Compact Power Inc., a unit of the Korean LG Chem.
GM has completely redesigned many of the systems integrated into the Volt from the electrical to its cooling systems. The Volt's radiator, for example, is slightly thicker than normal because of the cooling needs of the 400-pound, 5-foot long lithium-ion battery pack.
The Volt's engine kicks in after its battery is drained by about 70 percent to sustain the battery's remaining charge to keep the car running for several hundred additional miles.
By the end of the year, GM says it will be testing a fleet of 50 new vehicles with a production-intent underbody, battery, powertrain and hardware.
Buehler, which also has an office in Detroit, and GM have been working together since mid-2007, said Bob Riedford, Buehler president and general manager.
GM's New Diesel Opens Up, Loses Weight
Automotive News
By Richard Truett
Henry Ford once said the best engineering is to "simplicate and add lightness."
Charlie Freese and Gary Arvan don't work for Ford Motor Co. But the new diesel V-8 they designed for General Motors is simple and light. On paper, at least, it has the potential to be the first great engine of GM's second century.
GM plans to install the new Duramax 4.5 in its Chevrolet Silverado and GMC Sierra light-duty pickups and several SUVs next fall.
Last year, GM revealed the innovative top half of the new engine, with its turbocharger nestled between the cylinder heads where the intake manifold normally would be.
Now, GM is showing the bottom half of the engine. The innovations there are just as extensive.
Arvan is chief engineer for GM's Duramax diesel engines. Freese, GM's executive director of diesel engineering, said reducing the weight of the engine was one of the design team's top goals. Another was to make the diesel indistinguishable from the gasoline engine it will replace.
"If I add mass that I don't need, I need bigger mounts to mate the engine to the vehicle. Now I need bigger springs to suspend the truck. The brakes need to be bigger," he said.
"So a little increase in the powertrain means big increases in the rest of the vehicle. As I increase the mass to deal with it, now I have to go back to the powertrain and make sure the powertrain is sized big enough to move all that mass. It's a death spiral."
Open up the bottom half of the Duramax 4.5 and you'll see things GM has never done in the crankcase of a regular production engine.
Start with the crank journals, the center section of the engine block that holds the crankshaft. They are cast into the block, but not in the usual way. GM used the same type of process, fracture splitting, for the main journal bearing caps that it uses on its connecting rods.
The result is greater precision, higher strength and lower costs on two fronts. The process needs less of the expensive compact graphite iron material for the block and bearing caps. Machining costs drop because the engine uses two bolts per bearing cap, not four.
It's a novel design for a diesel engine. A diesel's high compression ratio puts the crankshaft and bearings under tremendous stress and strain. Most diesels have heavily cast crankshaft bearing journals. GM's may be the lightest ever, with open spaces where you'd normally see thick metal.
The design of the crankcase also led to better circulation of air between the banks of cylinders. Because the sides of the bearing journals are not cast into the wall of the cylinder block, air can circulate freely as the pistons move. That reduces what engineers call pumping losses that sap performance as the engine turns over.
"One of the big issues for these modern diesels is the ability to handle the exchange of pressures through the crankcase itself," Freese said.
Because GM has not built a gasoline or diesel engine with a similar design, Freese declined to say how much weight or machining costs the new engine saves. But he said it was substantial and that some of the 4.5-liter engine's features likely would be used in future gasoline and diesel engines.
The lower engine's design helps meet two other design goals: Deliver at least a 25 percent fuel economy gain over a similar-sized gasoline engine, and meet the toughest emissions standards on the books. GM plans to build the engine tuned just one way, with one emissions system, and offer it in all 50 states.
Some other unique features of the engine include:
A hollow balance shaft with a gear-driven center section that transfers internal noise to the rear of the engine near where the transmission is mounted. The noise is muffled by the heavy transmission housing.
An aluminum cradle or upper oil pan that mounts between the engine block and the lower oil pan that stiffens the engine block. Said Freese: "We get a 30 percent stiffness improvement compared with any other benchmark design."
GM Is Confident It Can Manage Chrysler Brands
Detroit Free Press
By Tim Higgins
As General Motors Corp. executives work on what a possible merger with Chrysler LLC would look like, they apparently are not discouraged by the idea of adding more brands or dealers to the automaker's business, key factors that analysts have been criticizing.
If a merger is consummated, Chrysler's brands would become just like Chevrolet, Pontiac and Buick, people familiar with the situation tell the Free Press.
Conflicting brands could be dealt with in a few years after this industry turmoil has passed, one of these people added.
Another concern raised by analysts and other observers regards the addition of 3,500 Chrysler dealers into GM's already over-dealered network.
One person told the Free Press that those "excess dealers" would cost GM nothing in the short-term and that some -- if not many -- will fail on their own anyway.
Such a combination and digestion strategy would be in line with GM's origin and its 100-year history of buying other brands and car companies to provide a product for every purse and purpose.
There is no certainty yet that any deal will come to pass. Smaller ventures or deals with other automakers could be pursued. But a straight-out combination of operations is the assumed model for GM's team, led by President Fritz Henderson and Ray Young, his chief financial officer.
Cerberus wants a stake in a combined GM-Chrysler and could get a larger stake in GM's financing arm, GMAC. Cerberus already owns 51% of GMAC.
A person briefed on the talks said Cerberus wants to keep a stake in a combined automaker to ensure its GMAC lending business is tied to an automaker when the auto industry rebounds down the road.
Chrysler, GM and Cerberus are mum about any potential deal.
Cerberus acquired majority control of Chrysler last year from then-DaimlerChrysler in a $7.4-billion deal that involved Daimler spending money to get rid of its U.S. unit.
Since then, the U.S. auto industry has seen tremendous sales declines in part because of high gasoline prices and now turmoil in the financial markets that has made getting credit difficult.
The Wall Street Journal has reported that GM hopes to have a deal by the end of the month.
Several analysts have speculated that GM is interested in Chrysler in part because of the Auburn Hills automaker's supposed pile of cash. Chrysler has said that it ended June with $11.7 billion in cash and marketable securities.
GM, meanwhile, is burning through more than $1 billion in cash a month, and analysts are cautioning that the automaker could run out sometime next year.
Meanwhile, GM executives see billions in cost savings that could be had from a merger with Chrysler. The idea being that GM could pick the best of the two companies, keep the sales revenues and ditch the redundant fixed costs.
A person briefed on the strategy said GM is particularly interested in Chrysler's Jeep brand and minivans. There is even some interest in the Chrysler brand, this person said.
Others are not so sure.
"A longtime, frequent criticism of GM is that they've had too many brands out there, so pulling in a few more seems to be contrary to what they've been espousing for a while," said Joe Magyer, senior analyst with Motley Fool.
Kevin Tynan, an analyst at Argus Research, also sees little gain for GM by adding Chrysler, Dodge and Jeep brands.
"You're not getting anything global from Chrysler," he said. "I fail to see what the value is in those three brands. Jeep's not even worth what it was."
Lincoln Merrihew, an industry analyst with TNS Automotive, said a merger could result in savings but it could be 10 years down the road.
"It's extremely expensive," he said of merging auto companies. "You're buying out dealers, you're merging brands, you're paying the staff to go away, white-collar, blue-collar. It's a short-term expense with a long-term gain."
He expects that a merged GM-Chrysler would work to consolidate its dealer body over time. GM has 6,500 U.S. dealers.
Auto dealers in general are struggling across the country, especially dealers selling Detroit vehicles.
Steve Girsky, a former Morgan Stanley analyst and adviser to GM Chief Executive Officer Rick Wagoner, said in 2007 that two-thirds of domestic-brand dealerships needed to go before the remaining stores would be as profitable as import-brand dealerships.
National Automobile Dealers Association Chairwoman Annette Sykora said last week that the nation's troubled economy could contribute to 700 dealers going out of business this year.
GM/Chrysler? Anything's Possible
Automotive News
By Amy Wilson
With a roiling economy, cash flow woes and a credit crisis, the Detroit 3 are entertaining possible alliances that once would have been considered fanciful.
General Motors and Chrysler LLC are talking about a merger, and Chrysler CEO Bob Nardelli told Automotive News that either Renault-Nissan or a Chinese automaker could plausibly make a bid for Chrysler. It's the kind of environment in which many possible combinations are being discussed.
Will any of these proposals bear fruit? Here's our take on six possible scenarios.
1. GM-Chrysler
The two companies have had conversations about cooperation that could go all the way up to an outright merger. TheWall Street Journal reported that Cerberus Capital Management LP wants to swap Chrysler for the 49 percent of GMAC Financial Services that is still held by GM. Cerberus owns the other 51 percent of GMAC.
When news of the talks broke, many analysts panned the combination.
"The benefits of such a merger are, on the surface, slim for both GM and Chrysler," Global Insight analyst Aaron Bragman said in a report. "Both companies have significant and similar problems (too many dealers, damaged brands, falling sales, overcapacity, inability to raise capital) that combining forces will simply not cure."
Those negatives might outweigh any potential pluses. For GM, those benefits could be access to Chrysler's cash, the addition of minivans and Jeep to its portfolio and further cost cuts in back-office functions. Cerberus could benefit by combining GMAC and Chrysler Financial.
On a five-star scale, with five being very likely, how likely is this tie-up? Let's call it three stars — although there may be higher odds for smaller-scale partnerships.
2. GM-Chrysler-Ford
Why talk about a three-way combination? The idea was floated by at least one of those parties, but Ford has been a party pooper. Execs there said no to this idea and also nixed a proposed Ford-GM partnership. CEO Alan Mulally has the most cash of the Detroit 3, and he wants to go it alone for now.
But that doesn't rule out big partnerships, says Dave Cole of the Center for Automotive Research in Ann Arbor, Mich.
For instance, the three automakers could spin off their powertrain operations to form a single stand-alone company. To provide a competitive edge, each automaker would tailor its own software management of powertrains. "This is probably an easier thing to do than weave the companies together," Cole says.
How likely? Less than one star.
Sparse Plug-Ins for Electric Cars Spark Creativity
Associated Press
By Phuong Le
Owning an electric vehicle requires more than global-cooling ambitions. It takes guile, planning, sharp vision, a silver tongue -- and a 50-foot extension cord.
Steve Bernheim knows accessible outlets like a firefighter knows hydrants. He has to -- his Corbin Sparrow runs only 25 miles on a charge.
"You do guerrilla charging where you locate these plugs," said Bernheim, an attorney who lives in the Seattle suburb of Edmonds. "I'm an expert at finding them."
While California has more than 500 public charging stations at parks, malls and grocery stores to serve electric vehicles that rolled out in the last decade, the network is still thin across the rest of the country, forcing drivers like Bernheim to get creative.
That may change as charging stations crop up in San Jose, Seattle and Portland to serve early adopters and pave the way for a new breed of mass market plug-in cars.
"Every auto company in the world is developing all-electric or plug-in hybrids," said Zan Dubin Scott, a spokeswoman for Plug In America, a nonprofit advocacy group for electric car owners. "The utilities, municipalities and smart business people are seeing that this is the future."
The vast majority of electric vehicle owners charge their cars at home while they sleep, so most trips aren't a problem.
But drivers can now plug in -- reservations recommended -- at two park-and-ride lots in King County, which includes Seattle. The county plans to add sockets at three garages under construction.
"We want to make sure we're ahead of the curve in doing what we can to support the use of these vehicles," said Rochelle Ogershok, a county transportation spokeswoman.
In Oregon, Portland General Electric put five free charging stations in downtown Portland, Salem and suburban Lake Oswego and plans to add more.
At the end of the year, Coulomb Technologies plans to roll out five curbside charging stations in downtown San Jose that drivers can access through a prepaid plan. The company is working with entities in New York and Florida to do something similar, president and founder Praveen Mandal said.
Palo Alto-based Better Place is working with Renault SA to develop charging stations for electric cars in Israel and Denmark that would work on a paid subscription, said spokeswoman Julie Mullins.
In recent months, the smaller cities of Edmonds and Lacey invited drivers to plug in their electric vehicles at free public stations near city hall.
"We haven't seen much usage yet, but we wanted to put it out there," said Graeme Sackrison, mayor of Lacey, a town of 38,000 an hour south of Seattle. "You have to have the infrastructure in place so people feel comfortable using them."
Street-legal "neighborhood electric vehicles" that can travel up to 25 mph typically go about 35 to 40 miles on a single charge. Vehicles like the Chevrolet Volt that General Motors Corp. plans to sell in 2010 can travel about 40 miles before the gasoline engine kicks in.
Drivers like Bernheim, whose range is about 25 miles to a charge, has become adept at sweet-talking use of a 110-volt outlet if he needs to travel farther. Once he persuaded a fruit stand owner to let him plug in. He ended up buying $50 of produce there.
Bernheim says there are about 30 reliable sites in the Seattle area to plug in. Most are free, some require calling a fellow enthusiast ahead of time. Others charge the same as parking a gas-powered car -- $7 an hour at the downtown Seattle Public Library garage.
Jeff Smith, 51, a mechanical parts inspector, carries three extension cords of varying lengths when he drives his ZENN (Zero Emission, No Noise) two-seater.
At his home in a Seattle suburb, Smith has posted a sign "plug in vehicle parking only" outside his kitchen window and invites others to plug in. No one has taken him up on the offer yet.
When he wanted to go to a Little League game -- a round-trip that required an extra charge -- Smith cold-called restaurants to find one willing to let him plug in while dined there.
Eric Diesen, co-owner of the restaurant Acapulco Fresh, didn't mind. He'd let others do the same.
It didn't cost him much -- about a dime or so. "If it brought people in, we would do that again," he said. "And it's something we believe in."
Plug In America estimates there are several thousand freeway-capable, road-certified EVs, including both factory-built and conversions. Neighborhood electric vehicles may number in the tens of thousands.
It's a drop in the bucket compared to the more than 250 million vehicles on the road.
Driving an electric car can be a challenge when your roundtrip work commute is much longer than your car can travel. But Jason Henderson, 29, feels obligated to make it work.
"I saw 'Inconvenient Truth' and then realized that I needed to make a personal change to show others how easy it is to reduce our dependency on petroleum," Henderson said.
He bought a used Saturn with 100,000 miles and paid an expert $12,000 to convert it to all-electric. He estimates it has cost him about $252 in electricity to drive 9,000 miles in the past 18 months.
It's not hard to find places to plug in, but "there should absolutely be more spots," he said. "Everyone has power outlets, so it's just a matter of making them available."
Henderson now drives his car 15 miles from his Tacoma home, charges it at a friend's house and hops a vanpool another 35 miles to his office at Microsoft Corp.
He said he's just like a normal driver, "except my car has a much smaller carbon footprint and has a cheaper energy source."
CADILLAC PRESENTED TO AUSTRALIA IN STYLE ....
Cadillac, one of the world’s iconic automotive brands recently celebrated its return to the Australian market at a gala event in Sydney.
The event provided an opportunity to retrace Cadillac’s colorful 106-year history while showcasing the luxury performance credentials of its current models led by the award-winning CTS.
GM Director of Premium Brands, Parveen Batish, said the introduction of Cadillac to the Australian market signaled an exciting new chapter in the brand’s rich history.
“With cutting edge design, serious performance and a comprehensive package of luxury appointments, Cadillac will appeal to Australian prestige car buyers and offer a genuine alternative to the traditional European brands,” said Batish.
The Cadillac CTS will hit Australian roads in early 2009. It will be followed by the stunning Cadillac CTS Coupe later in the year.
MAINTENANCE STILL IMPORTANT FOR VEHICLES DRIVEN LESS .... Record numbers of Americans have reduced the number of miles they drive and put off routine maintenance due to high gas prices, tighter budgets, and the belief that if they are driving less their vehicle doesn't need as much attention. However, Goodwrench stresses the importance of regular vehicle care to maintain fuel efficiency and performance, as well as to protect their investment.
New data released by the U.S. Department of Transportation shows that, since last November, Americans have driven 62.6 billion fewer miles than they did over the same period a year earlier - exceeding the 1970s' total decline of 49.3 billion miles. And in July 2008 alone, Americans drove 3.6 percent less, or 9.6 billion miles fewer, than in July 2007. However even when driving less, there are a few things car owners should do to ensure trouble-free driving.
"If you are driving less and you are deferring maintenance there are some basic items that you need to give attention. Without a doubt, the top two are cleaning battery terminals - and generally making sure the battery is in good shape - and making sure tires are properly inflated," said Robert Sinclair, spokesperson for AAA of New York. "At AAA we've got 51 million members. In the average year we get 30 or 31 million service calls, and the top two items that we get calls for are flat tires and dead batteries - and yet they are the easiest things to maintain."
NUMBER THREE 2010 CAMARO ON EBAY AUCTION .... Chevrolet has provided Detroit’s own College for Creative Studies (CCS) the opportunity to purchase the third 2010 Camaro model when regular production starts in early 2009. In turn CCS is auctioning this very special model on Ebay as part of its primary fundraising event – the Detroit International Wine Auction.
Bidding on the 2010 Camaro started October 15 and will close on October 25, 2008 at 9:00 p.m. Eastern. You must be a registered Ebay user to bid on this item.
CANCER SURVIVORS VISIT GM SOUTH AFRICA IN PORT ELIZABETH .... In their quest to inform South African women about breast cancer, twelve breast cancer survivors who embarked on a Journey of Hope recently visited General Motors South Africa.
The survivors shared inspirational stories of their own journey to recovery and educated the GMSA women together with the local media about breast cancer and the importance of early detection.
The Journey of Hope is driven by HUMMER in conjunction with Eagle Wind Harley-Davidson.
GM and Chrysler Step Up Talks Over a Combination
The Wall Street Journal
By John D. Stoll
General Motors Corp. and Chrysler LLC are accelerating merger discussions amid strong support from potential lenders that are eager to see a deal done.
GM is set to report dismal third-quarter earnings in coming weeks and is scrambling to find new sources of funding, according to people familiar with the matter. That's spurring the auto maker to complete the deal as soon as the end of October, these people said.
Major banks that have long lent to both companies, such as J.P. Morgan Chase & Co., are also keen to do a deal to help reduce exposure to the auto industry
Cerberus Capital Management, which owns Chrysler, is looking to have a stake in a combined GM-Chrysler, according to people familiar with the situation. While some lenders like J.P. Morgan have shown interest in equity in such a deal, several other lenders approached by the parties have passed on the deal.
J.P. Morgan and Citigroup Inc., are representing Chrysler and Cerberus, while Morgan Stanley and Evercore Partners are representing GM, according to a person involved in the situation.
At this point, GM and Chrysler are far from having a firm deal in hand, people briefed on the negotiations said. Certain members of GM's board of directors continue to give the deal a cool reception. It is also unclear whether a key element of the talks -- swapping Chrysler for GM's 49% stake in GMAC LLC -- will happen, say these people.
Still, GM's management team is hammering out a potential takeover of Chrysler, and top-level executives remain bullish on the prospects of a combined GM and Chrysler.
While industry analysts have criticized the potential merger as being the equivalent of a Hail Mary, GM believes it can squeeze more than $10 billion in cost synergies from a deal, and get access to Chrysler's approximately $11 billion cash pile.
A GM spokesman declined to comment, as did spokeswomen for Cerberus and Chrysler.
The United Auto Workers has been among the constituents downplaying any potential benefits of a deal. However, the UAW leadership hasn't been as hostile in private in regard to the tie-up as public comments would suggest, people close to the union said.
The sale of Chrysler would trigger warrants the UAW has in the auto maker, a stake the union negotiated in last year's national labor talks. It is unclear what impact that would have, though it could give the UAW an even bigger ownership piece in a combined GM-Chrysler operation.
GM already has teams of people analyzing potential cost-cutting and savings it can do with Chrysler, which has about 66,000 hourly and salaried employees in North America.
"They'd have to move fast and gets lots of cost savings very quickly," said one person briefed on the talks.
Recently, GM has increased its estimates of how deep it could cut costs if it combined forces with Chrysler. And it is growing confident that it can slash those costs relatively quickly.
As GM continues to weigh a potential deal with Chrysler, the No. 1 U.S. auto maker is scrambling for ways to conserve cash amid what is turning out to be a horrendous month for U.S. auto sales. The company will lay off 1,500 workers in coming months at three assembly plants.
Even as Cerberus continues to engage in discussions with GM, it is also fielding talks with other potential suitors for Chrysler, people familiar with the matter said. The New York-based private-equity firm bought control of GMAC from GM in April 2006, and then turned around to buy Chrysler from Daimler AG about one year later.
Since Cerberus engaged in its buying spree, the U.S. auto industry has fallen into deep decline, with sales in coming months now expected to run at the lowest pace since the late 1980s.
Adding further pressure, key markets in other parts of the world -- including Europe and Asia -- are showing signs of fatigue, potentially limiting the near-term growth opportunities for U.S. auto makers looking to expand abroad.
GM Launches Additional Rebates on Certain Models
Automotive News
By Amy Wilson
General Motors today launched extra incentives for vehicle buyers who already qualify for company discounts.
Eligible for the additional rebates of $1,000 or $2,000 are GM employees and their extended family members, and employees of GM suppliers and GM dealerships -- essentially anyone who qualifies for the GM employee purchase price, said Jim Bunnell, executive director of GM's channel support group.
The additional rebates run through Nov. 3 and can be added to existing incentives, Bunnell said. The rebates cover 2008 and 2009 models.
Vehicles qualifying for the additional $1,000 are: The Chevrolet Malibu , Traverse and Avalanche; GMC Acadia; Saturn Outlook; Buick Enclave; Hummer H3; Cadillac CTS; and light- and heavy-duty versions of Chevrolet Silverado and GMC Sierra extended-cab and crew-cab pickups.
Vehicles qualifying for the $2,000 rebate are: The Chevrolet Impala , Pontiac G6 , Saturn Aura , Buick Lucerne , Saab 9-7X , Cadillac Escalade , Hummer H2 and light-duty versions of the Chevrolet Silverado and GMC Sierra regular-cab pickups.
Oil Prices Fall Below $70; Will SUVs Come Back?
Automotive News
By Richard Truett
A barrel of oil is down about 50 percent from its July 3 high closing price of $145.29. Gasoline prices are below $3 per gallon in most parts of the country. So, automakers can crank up those SUV factories again, right?
Wrong.
Even with oil closing today at $69.87 a barrel, almost no one expects rapidly falling gasoline prices to restore pickup and SUV sales.
"The driver of new-car sales has and always will be job and income growth," says George Pipas, Ford Motor Co.'s sales analysis and reporting manager. "There is scant little right now. In fact, they're contracting, not growing."
When October sales are tallied in two weeks, lower fuel prices won't translate into higher sales of pickups and SUVs, Pipas predicts. The weak economy, not lower fuel prices, will steer buyers to less expensive vehicles, he believes.
"You'll see a return of growth in small cars in October," Pipas says. "We will see small cars grab a higher share of the segment in October than in September. We'll see SUVs and trucks fall."
Mark LaNeve, GM's vice president of North American vehicle sales, service and marketing, says lower fuel prices might cause some consumers to consider putting a pickup or SUV back on their shopping lists.
But when October sales are reported, he doesn't expect much of a shift in demand for pickups and SUVs. And he has ordered GM's marketing team to keep pushing fuel economy in the company's advertising.
Says LaNeve: "Long term, there will be upward pressure on the price of oil. Consumers are seeking fuel efficiency in every segment."
In the past week, the price of gasoline is down more than 33 cents per gallon, according to the Energy Information Administration. In early July, the pump price peaked at $4.16 per gallon, according to the government agency. That triggered a run on small cars and slowed sales of pickups and SUVs.
The tipping point for the move was $3.50 a gallon, Ford executives say.
"People are of the opinion that gasoline prices are what killed the SUV," says Pipas. "That's not true. What it did was accelerate the decline of sales in that category. They were going down anyway."
At Toyota of Orlando in Florida, sales of vehicles such as the Sequoia SUV and Tundra pickup are way off, but 0 percent financing deals have some more customers kicking the tires of those vehicles now than were doing so in recent weeks, says Kate Frost, the dealership's sales manager.
Frost says her sales team has fielded more calls on Toyota's trucks and SUVs in the past few weeks. "That might be the 0 percent for 60 months, the gas prices or a combination of the two," she says.
Ford's Pipas says lower fuel prices are coming as consumers are looking for any good news.
Says Pipas: "It's helpful to consumers. It's like a tax cut. With rising interest rates and declining stock and home prices, consumers need all the help they can get."
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